How Risky Is Smith & Wesson Holding Corp Stock?

Gunmaker Smith & Wesson (NASDAQ: SWHC) has rallied more than 70% over the past 12 months, as concerns about tighter gun control laws sparked higher firearm sales. The number of NICS background checks for firearm purchases has risen annually for 15 straight months, and year-to-date checks through July have already hit 16.03 million -- indicating that total checks for 2016 should surpass the 21.14 million checks in 2015.

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Smith & Wesson is a controversial investment, because its stock usually ralliesMother Jones

But controversies aside, it's hard for investors to ignore Smith & Wesson's long-term growth. Between fiscal 2011 and 2016, the gunmaker's annual revenue more than doubled. Will that growth continue, or will Smith & Wesson be derailed by the incoming headwinds in the gun market?

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